China To Establish A Deposit Insurance System Discussed

As one of the "Security Nets" for guarding against financial risks, the system of deposit insurance (DIS) has operated for more than 70 years on aboard, and has played an important role on guarding against financial risks in some degree. While the research shows that there should be a series of exterior environment to guarantee the effective operation of the system, so the paper begins from the exterior environment that guarantees the system operation. It analyses the advantages and disadvantages of the system, studies two modes of the system and expounds necessity and feasibility of setting up the system in China. The paper also draws up DIS pattern in accordance with China's status.The paper is classified into five parts. Introduction sets forth the background of the research, the analytic methods and innovations. The second chapter focuses on the theory foundation of DIS' existence. Based on the characteristics of commercial bank this chapter analyzes the theory foundation that DIS prevents the financial crisis and the advantages and disadvantages of DIS. The third chapter makes concrete research on American and Germany as examples in order to get some experience. The forth expounds the necessity and feasibility of establishing DIS in China. On this base the fifth tries to design the frame of China's DIS and to make suggestions for resoling possible problems when establishing the system.